Montpellier Group PLC
19 February 2004
Montpellier Group plc
('Montpellier' or the 'Group')
Trading Update
Montpellier, the construction and property Group announces that following the
sale of its Investment Division in late 2003 it has now completed a
comprehensive review of its operations.
After a disappointing result for the year to 30th September 2003 the effects of
the management changes which have been implemented should result in an
improvement in the contribution from the Construction Division for the current
year, with a particularly encouraging outlook for 2005.
Since the year end the Group has disposed of four loss making subsidiaries and
is continuing to substantially reduce overheads. Whilst the cost of these
actions will impact on the result for the current year the benefits will be
visible from 2005 onwards.
The Group now comprises nine UK focused construction businesses operating across
a wide range of specialist markets. Property assets in the UK and America will
continue to generate strong cash flows.
After taking account of the impact of the non-recurring cost reduction
initiatives that are being implemented, both in the operating subsidiaries and
at Group level, it is expected that the Group operating profit for the current
year will be not less than the published Group operating profit for the year
ended 30th September 2003.
In the absence of unforeseen circumstances the Board expects at a minimum to
maintain the dividend while continuing its policy of further dividend growth in
line with improved trading performance. The Company has an ungeared balance
sheet with good cash reserves and is well placed to take advantage of further
selective acquisition opportunities.
19 February 2004
ENQUIRIES:
Montpellier Group plc Tel: 020 7522 3200
Paul Sellars, Group Managing Director
Rowan Dartington & Co. Limited Tel: 0117 933 0020
John Wakefield
Barrie Newton
College Hill Tel: 020 7457 2020
Matthew Gregorowski
Mark Garraway
This information is provided by RNS
The company news service from the London Stock Exchange